20250612-招银国际-九毛九-09922.HK-SSS_recovery_and_store_revamp_on_track_7页_1mb

报告摘要

Jiumaojiu (9922 HK) equity research update from CMB International Global Markets, dated 12 June 2025.

Same-Store Sales (SSS) Performance: SSS decline narrowed in 2Q25E due to reduced discounts and promotions, with volume remaining the primary factor. Table turnover improved compared to prior periods, particularly helped by lower competition, extended holidays, and spillover from home appliance subsidies.
Store Revamp Progress: The Tai Er brand's store format upgrades are showing positive results, enhancing traffic and sales. Large store revamps cost c. HK$1.8-2mn with 45-day implementation, while smaller upgrades cost less and can boost SSS by 30%. Management aims to revamp 100-150 stores in 2H25E, supporting margin improvements where a 12% sales increase covers additional costs.
Financial Outlook: Revenues and profits are forecasted higher for fiscal years 25E-27E due to the store revamp program and reduced impairment losses from store closures. EBIT and net profit margin improvements are expected, though macro factors remain risks.
Valuation: Analyst maintains a HOLD rating with a raised target price to HK$2.99 (up 11.4% from previous), based on 13x FY25E P/E. An alternative view sees the ex-cash P/E as less attractive.
Share Repurchase: The company passed a HK$2.68 closing price repurchase program worth c. HK$1.84bn, equivalent to ~6% of market cap, indicating commitment to shareholder value.
Comparison: Financial metrics like gross margin (64.3%) and operating margin show improvement, aligning with peer analysis and forward P/E estimates receiving mixed ratings (Buy/Hold).